GST registration cancellation quashed due to lack of reasoned orders violating natural justice principles

The Allahabad HC allowed the petition challenging GST registration cancellation. The court found that both the original cancellation order and appellate authority's dismissal were passed without recording cogent reasons, violating principles of natural justice. Following precedent from Namo Narayan Singh case, the court held that absence of reasons renders orders lifeless and violative of natural justice. The matter was remitted to the first appellate authority to pass a fresh reasoned order in accordance with law.

---

---

Issues involved:
The issues involved in the judgment are the cancellation of GST registration without providing reasons and the dismissal of the appeal without assigning any reason.

Cancellation of GST registration without providing reasons:
The petitioners challenged the cancellation of their registration without being served any information or order, which was discovered when their bank account was frozen. The cancellation was based on alleged bogus Input Tax Credit without giving any opportunity or notice to the petitioners. The appellate authority dismissed the appeal without providing any reason, leading to the petitioners seeking relief through the writ petition.

Dismissal of the appeal without assigning any reason:
The impugned order cancelling the GST registration of the petitioners lacked any cogent reason, and the appellate authority summarily dismissed the appeal without providing any justification. The court emphasized the importance of giving reasons in judicial orders, citing previous judgments that highlighted the necessity of reasons to ensure transparency, fairness, and the right of litigants to understand the basis for decisions.

Judgment Summary:
The High Court entertained the Writ Tax due to the non-functionality of the GST Tribunal in Uttar Pradesh. The petitioners contested the cancellation of their GST registration without being served any information or order, leading to the freezing of their bank account. The appellate authority dismissed the appeal without reasons, prompting the court to refer to previous judgments emphasizing the necessity of giving reasons in judicial orders. The court found that the impugned orders lacked valid reasons and remitted the matter back to the appellate authority to pass a fresh reasoned order within two months, ensuring the petitioners are afforded reasonable opportunities of hearing. The writ petition was allowed, setting aside the impugned orders and emphasizing the importance of providing reasons in judicial proceedings for transparency and fairness.

---